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How Much Does It Cost to Build a House in Los Angeles?

Because of the excellent weather, magnificent scenery, and vibrant culture of Los Angeles, housing prices are notoriously high. New construction is expanding in the region, which has helped drive up home values even more.
Depending on the exact location of a property in Los Angeles, the prices will vary considerably. For example, building a home in Hollywood Hills will cost more than one in the San Fernando Valley.
If you’re ready to build your own home, we’ve got you covered with our article that gives you a comprehensive rundown of different construction cost variables in Los Angeles.

The cost of home construction in LA

The cost of constructing a home in Los Angeles varies from around $200 for a value-conscious house up to $400 or more for one that’s uniquely designed. The national average construction costs start from $150 per square foot and may go up to $500 for luxury and custom homes. Because Los Angeles is one of the most expensive cities to build a house, residents there may spend up to 8% more than the national average on their homes.
Every house starts with a solid plan, including various elements such as building permits, land types, construction and design costs, and electrical pricing. The two most common categories of construction project costs are hard and soft expenditures. Let’s look at what each one entails and how it is calculated in Los Angeles.

Hard Costs

Hard costs include expenditures directly linked to the physical construction of a facility. Electrical, plumbing, HVAC, roofing, foundation, and interior detailing are all examples of hard expenses. Contractors in Los Angeles pay close attention to the following aspects of a home when constructing a secure and long-lasting abode:

Electrical costs

On average, electrical expenses for new properties are between $2 and $4 per square foot. In addition to this, wiring expenditures might range from $6 to $10 per linear foot.


The typical cost for a roof in Los Angeles is between $6,000 and $12,000. The most popular materials are asphalt shingles, which range from $1 to $2 per square foot, and composition shingles, which cost around $400 per square (the cost of roofing shingles is often measured in terms of “squares.” A square is equal to 100 square feet of shingles).


A new house with 2,500 square feet will cost roughly $12,000 or $5 per square foot to plumb.


HVAC costs for a 2,500-square-foot home range from $2 to $4 per square foot, depending on the HVAC unit you and your contractor select.


The cost of a home’s foundation is approximately $4 to $25 per square foot.


Between $100 and $250 each hour, the labor cost varies between $200,000 and $500,000.

Soft Costs

The term “soft costs” refers to the intangible elements of a home, such as design, equipment, land, and permit expenses. These are often taxes, design expenses, installation charges, land acquisition fees, and licensing costs. They may occur at any point during the building process.
While soft costs may appear less daunting, they can turn into problems later in the building process if not addressed. When evaluating the construction cost, one frequently discovers that soft expenditures account for 30% to 70% of the overall budget. The following are some of the soft expenses involved in home construction:

Land Cost in LA

The choice of where to build your house in Los Angeles is an important one. According to Zillow, buying vacant lots can cost anywhere from $3 per square foot up to $20-$30 per square foot for hillside sites with spectacular metropolis vistas.

Design Costs

After selecting the ideal site for your dream house, the next step is to choose an architect and designer. Professional architects, engineers, drafters, and general contractors are usually charged by the hour. Architects and designers in Los Angeles charge a variety of prices, ranging from $16 to nearly $50 per hour, with the average hourly rate of $25-30. Costs for architectural design services are approximate and do not include materials used by the specialists or the type and scope of the job.

Permits and Other Costs

Permits are an important component of constructing a home. These permits will assist local authorities in monitoring projects and ensuring that safety standards are met. Permits, like every other service, have different prices and expenses depending on the region of construction. Permits in Los Angeles generally cost between $3,000 and $7,000. These expenses include everything from construction to garage conversion, electrical, roofing, fence, plumbing, HVAC, and builder costs. It is crucial to note that these are permit charges rather than labor charges, which were addressed in the previous section.

Expert Cost Estimating & Management in LA

Estimating and managing costs is one of the most essential elements when building your home. As part of our comprehensive cost management process, ATLAS Construction Cost Consulting delivers expert construction cost planning and budget development services in the greater Los Angeles area. Our clients profit from a realistic pricing estimate that enhances budget accuracy and dependability. Take a look at the ATLAS Construction Consulting brochure, which details the consulting services we provide, and get in contact with us right now for a free consultation!

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